Crawford avalanche., 1887-06-23
THE WESTERN STATES.

TUESDAY last was by long odds the Widest
day the Chicago Board Of Trade has ever
seen. The powerful wheat clique which has
mystified and perplexed the speculative world
for over three months collapsed and left its
principals bankrupt Two old and we'll
known commission firms-M Rosenfeld a Co,
and Hamill d Brine-were carried down with
the wreck, and dozens Of others are
left tottering on the vergo of ruin
The two firms named lose upward OF
$2,OOO, ,OO0 The total break for the day was
1870, and, without exception, was the greatest
drop in wheat ever known. The market
opened for June wheat at 92Hc, being the
closing Of the day previous, while July opened
at $500 June dropped 1c at jump until
a Go decline had taken place. when all hands
took hold, and ii recovered sc, where it stood
for little while; then some holders began TO
feel shaky and sell small lots, dropping the
price slowly but surely, until whispers Of the
weakness OF Rosenfeld fioated through the
air, when scramble to get from under took
place, and turned into q general stampede
when the general announcepent was made
Chicago paper thus recites the history Of this
great corner:
dicate of capitalists which has sought TO run
successful corner In wheat. The deal began
with tho May option and when delivery day
came around several million bushels wefo
dumped into the laps OF the brokers or ropre-
sentatives Of this clique. Maurice Rosenfeld
q Co., G. J Kershaw & Co.. Irwin, Green a Co..
handle the business % for or the syndicate.
I,,,,o The deal was nSs Transferred to June. and
bought to keep np thia option. Prices
advanced. and the shorts Laughed at
e sss s
When June delivery day arrived the clique bro
kers took all the grain that was offered 60 them.
Sanss %ere caed upon To msae adyanoes oH
the grain in store. These advances were based
upon price not exceeding 90 cents por bushels
ness. Az June advanced the clique saw
that they hal undertaken to move o
mountain, and they used every effort TO
wheat from Dakota. A corner In storage was
effected and the railroads were blocked. Road
after road served notice that no more wheat
| would be shipped to Chicago This brought
| the shorts TO the front with vengeance. There
are 1860 members Of the Board Of Trade About
500 OF these arc con.combatants " the re-
naming 1,460 about 400 trade In wheat, and Of
these 1900 not moro than 200 are on the bull sido
| OF the deal. The other 200 are what are known
and do 4 commission business. Their custom.
| ers in the Northwest seeing the market going
| up and prices high ordered them 10 soil the
hope to get q much better price for their
| wheat. When the roads became blocked these
customers began To write letters expostulating
| with their agents for not pushing the matter:
| These shorts then went to the directors and
| made complaints, and the result was that the
| directors took up tho matter and determined to
| crush out the clique in so far as the cornor IN
| storage and blocking OF the railroads was con-
| cerned. The farmers and shippers throughout
the Northwest were advised that thoy - could dc dc,
| for shipment to Chicago. The railroads, seeing
that the war was liable 10 hurt them, began "a
cry out, and the result was that the syndicate
took fright
THE second day OF the troubles on the
Chicago Board of Trade resulted in the
failure OF fifteen firms and the utter
collapse of the corner in wheat
Tuesdays drop in wheat OF 10 cents was fol
lowed up by further break Of 81 cents on
Wednesday, from which there was but an in
significant rally at the close. Seventeen firms
we're posted for failure to settle margins, and
while II is an u ter impossibility to arrive a
anything definite in the matter of liabilities
Of the stricken houses, it is safe II
say that over twenty million bushels
are involved, and that the loss OIL
this immense block is not less thar
s5,OoO,OOO This makes a total of $4,000, ,O0t
| III wv uaio. hhOhB hio SOhHpoOu ~ mo nv
such as G. ]. Kershaw & Co., Crosby q Co.
Grigg. Son q Co, s. D. Eldredge & Co., J. A
Edwards & Co., Hord Bros. & Co, T. E. Bald
win Il Co, J. II. Yourt 4 Co, B. J. McClear.
& Co, s. c. Orr, M. b Crafts 4 Co, Picker
ing & Co, IL ]. Sheldon, H. X Matthew'S
Hibbard q Co, NJ. s Robinson d Co. an,
Yourt 4 Brearly The Tribune OF Thursda.
Gays edtorialy:
The standard grade OF wheat for deliver
during tho current month sold yesterday Ii
| this market for 90 cents por bushel. This
the lowest point touched in Chicago sine
| the year 1861, and it was reached only by VIII
tue OF n decline which must have been ter
| rible one to tho unfortunate holders. The dro
OF the present week amounts to about - cent
per bushel which entails loss Of abou
S3,60J 900 in the selling value of the whoa
in store, to say nothing Of the CORE
| spending shrinkage ON an untold number @
millions of bushels that had been bought 10
delivery this month and n smaller decline 4
longer futures Tho break carried the marke
down to about the figure allowed by tho bank
to the parties who borrowed money tn
property, and this fact induced good buying b
men who think Il must be worth at least this
much. In other words there is pretty goo
reason TO believe that the storm Is ovel
though the commercial atmosphere will b
unsettled for some time to como, and it will b
several days before all the wrecks are oleare
AWAY. And the list Of those wrecks is q Ion
ono.